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B&G Foods shares nosedive 14% as Q3 results disappoint

EditorRachael Rajan
Published 11/06/2024, 05:24 AM
© Reuters.
BGS
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NEW YORK - B&G Foods, Inc. (NYSE: NYSE:BGS) saw its shares plunge 14% after reporting third quarter results that fell short of analyst expectations, with both earnings and revenue missing estimates.

The packaged foods company posted adjusted earnings per share of $0.13 for Q3, significantly below the $0.20 expected by analysts. Revenue came in at $461.1 million, also missing the consensus forecast of $473.8 million.

B&G Foods' Q3 revenue declined 8.3% YoY, primarily due to the divestiture of its Green Giant U.S. shelf-stable product line and lower unit volumes. Base business net sales, which exclude divested brands, decreased 4.4% compared to the prior year period.

Adjusted EBITDA fell 12.5% YoY to $70.4 million in Q3. The company cited slower than expected recovery in sales trends, consistent with broader industry challenges in center store packaged foods.

"B&G Foods' third quarter results reflected a slower than expected recovery in sales trends, consistent with the center store packaged food industry," said Casey Keller, President and CEO. "We expect trends to gradually improve and stabilize into the first half of 2025 as we lap consumer reaction to higher prices across food categories."

For full year 2024, B&G Foods revised its guidance downward. The company now expects net sales of $1.92-$1.95 billion and adjusted EPS of $0.67-$0.77, both ranges falling below current analyst consensus estimates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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